Trukkin Middle East raised over $3.5m in its latest funding round as the technology-driven logistics firm looks to scale up its services across the GCC, the company said on Sunday.
The funding round for the UAE and Saudi Arabia-based truck-hailing company was led by three Saudi family group investors: the Al Namlah family group, the Al Madi family group, and the Abanumay family group. Batic Investments and Logistics, a publicly listed company on Saudi's Tadawul, remain the start-up's key investor. This was the second fundraise for Trukkin, which previously raised over $500,000 in a seed round.
Trukkin did not confirm when the recent funding round was concluded or who the lead investor was.
“Trukkin is building up its marketplace to connect thousands of mostly independent truckers. The long-haul land transport market is highly fragmented and disorganised, and our aim is to institutionalise and professionalise this business,” said Trukkin founder and chief executive Janardan Dalmia.
Venture capital activity in the Mena region hit record levels last year, up 31 per cent, totalling $893 million compared to 2017, start-up community platform Magnitt said in a report in January, with FinTech becoming the most active industry.
Trukkin said the $3.5m capital injection will help the company “significantly scale” its services across the GCC region. In Saudi Arabia alone, the company has completed over 10,000 long-haul, business-to-business truck movements.
“Trukkin’s vision, operational efficiency, capital utilisation, and sound business model drove us to partner with them in the region over other competitors. Trukkin knows the pulse on the ground,” said Mohamed Al Namlah, managing director of investor Amnest Group.
A spokesperson for investor Al Madi said it was "impressed" with Trukkin’s achievement.
Launched in 2017, Uber-esque Trukkin offers digital logistics solutions for long-haul trucking by operating on an asset-light model, which means it does not own the trucks it uses. Shippers can log onto the app or online platform to transport goods, before picking a chosen supplier from the bidders. The company says its client base ranges from businesses who order about 100 trucks a day to those ordering three trucks a month.